Could a nonprofit religious television organization sell tangible personal property without collecting Florida sales tax when it also held regular public worship services?

Plain-English summary

The nonprofit religious broadcaster did not have to collect Florida sales tax on its sales of tangible personal property because it also qualified as a church.

The organization already held a valid consumer's certificate of exemption as a religious institution based on its nonprofit religious television station. It also conducted regularly scheduled worship and church services open to the public at its station facility. Taken together, those facts satisfied the rule's definition of a church—an established physical place where people regularly assemble for religious worship and instruction.

That distinction mattered because the ruling described churches as having an exemption for both qualifying purchases and their sales of tangible personal property, while other nonprofit religious institutions generally received only the purchase-side exemption.

The Department stated one limit: the organization still had to collect and remit tax on leases, licenses, or rentals of real property to others.

What this means for you

A religious-institution exemption certificate did not automatically exempt the organization's own sales. The Department separately analyzed whether the organization met the narrower church definition through regular public worship at an established physical location.

Common questions

Q: Were the organization's tangible-property sales exempt?
A: Yes. The Department found that it qualified as a church on the stated facts.

Q: Did religious broadcasting alone establish the sales exemption?
A: The ruling relied on both the existing religious-institution status and regularly scheduled public worship services at the station facility.

Q: Did the organization need to charge tax on real-property rentals?
A: Yes. The ruling expressly preserved tax on its leases, licenses, and rentals of real property to others.

Q: Did holding a consumer's certificate of exemption alone settle the issue?
A: No. The Department separately examined whether the organization was a church for purposes of its own sales.

Citations and references

• Fla. Stat. § 212.08(7)(o) — churches and religious institutions
• Fla. Admin. Code r. 12A-1.001(3) — exempt organizations and definition of church
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 95A-040R

Original ruling text

Status: Revises TAA 95A-40, issued August 10, 1995

Nov 13, 1995

Re: Technical Assistance Advisement 95(A)-040R (Revised)
Sales by a Nonprofit Religious Institution Which Holds a
Valid Consumer's Certificate of Exemption
s. 212.08(7)(o), F.S.
Rule 12A-1.001(3), F.A.C.
Taxpayer: XXXXX
FEI#: XXXXX
Consumer's Certificate of Exemption#: XXXX

Dear :

This response is to your petition of April 12, 1995, requesting
the Department's issuance of a Technical Assistance Advisement
(TAA) pursuant to s. 213.22, F.S., and Ch. 12-11, F.A.C.,
regarding the referenced Taxpayer and matter. The Department
has carefully examined your request and supporting documents and
finds them to be in order. Therefore, the Department is hereby
issuing the requested TAA.

DISCUSSION OF FACTS

Your letter and supporting documents impart the following
information relevant to the issue under advisement herein:

"[Taxpayer] is a Florida corporation not-for-profit, exempt
from federal income taxes under Section 501(c)(3) of the
Internal Revenue Code, and exempt from Florida sales and
use taxes pursuant to its Consumer['s] Certificate of
Exemption (see copy attached as Exhibit 2). The activities
of [Taxpayer] include broadcasting of religious television
programming, the conduct of regular worship services,
benevolence activities, and other ancillary activities in
keeping with its religious purpose. Based on the

information submitted with [Taxpayer's] most recent
application for renewal of its Consumer['s] Certificate of
Exemption, the Department of Revenue ('the Department')
determined that [Taxpayer] is a religious institution as
defined in the Florida sales tax statutes. [Taxpayer]
submitted information with its application demonstrating
that it qualified as a religious institution' in two distinct ways: (1) it meets the criteria set forth in Section 212.08(7)(o)2.a., F.S., regarding having aphysical place for worship' at which nonprofit religious
services are carried on, and (2) it meets the criteria set
forth in that same subsection regarding owning and
operating a Florida television station, 90% of the
programming of which is religious, and is predominately
publicly supported. (See copy of Application materials
submitted attached as Exhibit 3). The conduct of religious
worship services is not, however, the sole or dominant use
of [Taxpayer's] building facilities.

The Taxpayer's purposes as describe in Article II. of its
Articles of Incorporation as originally submitted with its
petition are the following:

"The general nature of the objects and purposes of this
corporation shall be to provide an independent,
incorporated group, not for profit, for the establishment
and operation of a Christian broadcasting and telecasting
system, founded upon and tested by Bible Principles to the
end that through the Holy Spirit all people may be better
prepared for living the abundant life of the Lord Jesus
Christ."

The Taxpayer's petition was supplemented by a copy of an
amendment (the "Amendment") to Article II. of its Articles of
Incorporation dated September 28, 1995. The Amendment states
the Taxpayer's purposes as follows:

"The general nature of the objects and purposes of this
corporation shall be to provide an independent,
incorporated group, not for profit, for the establishment
and operation of a Christian ministry, founded upon and

tested by Bible Principles to the end that through the Holy
Spirit all people may be better prepared for living the
abundant life of the Lord Jesus Christ. This ministry will
carry out its purposes by conducting regular worship/church
services, providing prayer, counseling and financial
assistance to needy individuals, engaging in telecasting
and broadcasting activities, and any other lawful means."

A written statement regarding worship services included in
support of your request provides the following:

"... meets every 2nd and 4th Thursday mornings from 10:00
A.M. - 12:00 P.M. Each meeting includes praise and worship
music and special singing. We feature different speakers
anointed to teach the Bible and minister to those who may
have need...."

REQUESTED ADVISEMENT

You request the Department's ruling in the following issue:

"The issue in question is whether [Taxpayer] is required to
collect from purchasers and remit to the Department sales
taxes on sales of tangible personal property made by
[Taxpayer]. The determination of this issue hinges upon
whether [Taxpayer] is considered a `church' for sales tax
purposes."

DISCUSSION OF LAW

The following statutory, administrative, and case law is
relevant to the issue under advisement herein:

Section 212.08(7)(o), F.S.: "(o) Religious, charitable,
scientific, educational, and veterans' institutions and
organizations.
"1. There are exempt from the tax imposed by this part
transactions involving:
"a. Sales or leases directly to churches or sales or
leases of tangible personal property by churches;
"b. Sales or leases to nonprofit religious, nonprofit

charitable, nonprofit scientific, or nonprofit educational
institutions when used in carrying on their customary
nonprofit religious, nonprofit charitable, nonprofit
scientific, or nonprofit educational activities, including
church cemeteries;....
"2. The provisions of this section authorizing exemptions
from tax shall be strictly defined, limited, and applied in
each category as follows:
"a. 'Religious institutions' means churches, synagogues,
and established physical places for worship at which
nonprofit religious services and activities are regularly
conducted and carried on. The term religious institutions' includes nonprofit corporations the sole purpose of which is to provide free transportation services to church members, their families, and other church attendees. The termreligious institutions' also includes state,
district, or other governing or administrative offices the
function of which is to assist or regulate the customary
activities of religious organizations or members. The term
`religious institutions' also includes any nonprofit
corporation which is qualified as nonprofit pursuant to s.
501(c)(3), United States Internal Revenue Code, 1986, as
amended, which owns and operates a Florida television
station, at least 90 percent of the programming of which
station consists of programs of a religious nature, and the
financial support for which, exclusive of receipts for
broadcasting from other nonprofit organizations, is
predominantly from contributions from the general public."
(Emphasis Supplied)

The Department in construing the above statutory exemptions for
"churches" and "religious institutions" must adhere to, and be
guided by, the long-standing and fundamental precept of
statutory construction, established by the Florida Supreme
Court, which mandates that exemptions from, or exceptions to,
taxing statutes are special privileges granted by the
legislature and must be strictly construed against the taxpayer
and in favor of the administering agency. See Asphalt Pavers v.
Dept. of Revenue, 584 So.2d 57 (Fla. 1 DCA 1991); Dade Cty.
Taxing Auth. v. Cedars of Lebanon, 355 So.2d 1205 (Fla. 1978);
Williams v. Jones, 326 So.2d 425 (Fla. 1975); Straughn v. Camp,

293 So.2d 689 (Fla. 1974); United States Gypsum Company v.
Green, 110 So.2d 409 (Fla. 1959).

The Department is empowered to promulgate and adopt
administrative law to interpret the provisions of the statutes
it is charged by the Legislature to administer and enforce. The
following rule provisions were promulgated and adopted by the
Department to interpret the above statutory exemptions for
churches and religious institutions:

Rule 12A-1.001(3), F.A.C., provides: "(3) RELIGIOUS,
EDUCATIONAL, CHARITABLE, VETERANS' AND SCIENTIFIC
ORGANIZATIONS, HOMES FOR THE AGED, NURSING HOMES OR
HOSPICES, FEDERAL AND STATE CHARTERED CREDIT UNIONS,
FLORIDA RETIRED EDUCATORS ASSOCIATION AND LOCAL CHAPTERS,
ORGANIZATIONS PROVIDING SPECIAL EDUCATIONAL AND SOCIAL
BENEFITS TO MINORS, STATE THEATER CONTRACT ORGANIZATIONS,
MILITARY MUSEUM FUNDRAISERS, COAST GUARD AUXILIARIES, AND
CEMETERY ASSOCIATIONS.
"(a) A sale or lease directly to or sales or leases of
tangible personal property by churches, or a sale or lease
directly to nonprofit religious, nonprofit educational,
nonprofit charitable institutions, and veterans'
organizations, for use in the course of their customary
nonprofit religious, nonprofit educational, nonprofit
charitable activities, and for use by veterans'
organizations, including church cemeteries, are exempt from
the tax imposed by Part I, Chapter 212, F.S.... However,
such institutions or organizations desiring to qualify for
the exemption must obtain from the Department of Revenue a
consumer's certificate of exemption, and payment must be
made directly to the dealer by the exempt entity. See
subparagraph (9)(d)2. of this rule for a suggested document
to be provided the dealer by an employee who has been
authorized to make purchases on behalf of a nonprofit
organization when payments are made directly to the dealer
by the exempt entity. This exemption shall not inure to
any transaction otherwise taxable when payment is made by
an exempt entity's employee by any means, including but not
limited to, cash, check, or credit card, when that employee
is subsequently reimbursed by the exempt entity. See Rules

12A-1.038 and 12A-1.039, F.A.C.
"(b) Sales or rentals of tangible personal property,
rentals or leases of transient rental accommodations,
rentals or leases of real property, rentals or leases of
parking, docking, or tie down spaces, admissions, or other
transactions subject to the tax imposed by Part I, Chapter
212, F.S., made by exempt entities, with the exception of
sales or leases of tangible personal property by churches,
are taxable. Such entities are required to register in the
same manner as other dealers and collect and remit tax on
transactions which are subject to the tax imposed by Part
I, Chapter 212, F.S. For admission charges imposed by
not-for-profit sponsoring organizations qualifying under
the provisions of s. 501(c)(3) of the U.S. Internal Revenue
Code, see Rule 12A-1.005(3)(g), F.A.C.
"(c) Church' means a religious institution having an established physical place of worship where persons regularly assemble for worship and instruction for religious purposes. Religious organizations whose functions are radio or television broadcasting or those organizations conducting services for short periods of time at temporary locations, and religious associations that provide administrative functions only, are not considered to be churches. "(d)Religious institutions' means churches, synagogues,
and established physical places for worship at which
nonprofit religious services and activities are regularly
conducted and carried on. The term `religious
institutions' includes:
"1. Nonprofit corporations, the sole purpose of which is to
provide free transportation services to church members,
their families, and other church attendees.
"2. State, district, or other governing or administrative
offices whose function is to assist or regulate the
customary activities of religious organizations or members
within the state or district organization.
"3. Any corporation qualified as nonprofit pursuant to s.
501(c)(3), United States Internal Revenue Code, 1986, as
amended, that owns and operates a Florida television
station of which 90 percent of the station's programming
consists of programs of a religious nature. In addition,

in excess of 50 percent of the financial support for the
corporation, exclusive of receipts for broadcasting from
other nonprofit organizations, must come from contributions
from the general public."

Agencies are afforded wide discretion in the interpretation of
statutes which they administer, and such interpretation will not
be overturned on appeal unless clearly erroneous; reviewing
court will defer to any interpretation within the range of
possible interpretations by the administering agency. Dyer v.
Department of Ins. and Treasurer, 585 So.2d 1009 (Fla. 1 DCA
1991); Natelson v. Department of Ins., 454 So.2d 31 (Fla. 1 DCA
1984), reh. den. Sept. 6, 1984.

Administrative rules interpreting sales and use tax statute are
accorded considerable persuasive force and court would not
depart from such constructions unless clearly erroneous or
unauthorized. State Ex Rel. Szabo Food Serv., Inc. of N.C. v.
Dickinson, 286 So.2d 529 (Fla. 1973), reh. den. Jan. 9, 1974.

The practical construction placed upon a statute by an
administrative department of state government, when not in
conflict with the constitution or the plain intent of the
legislative act especially when established by long usage, is
entitled to great persuasive force and efficacy, and the court
will not depart from such construction except for the most
cogent reasons. Green v. Hood, 120 So.2d 223 (Fla. 2 DCA 1960).

In the matter of Christian Television Corporation, Inc. v.
Department of Revenue, State of Florida, Case No. 86-0456 (Jan.
5, 1987) the Department issued a final order ruling that the
organization did qualify to have its Consumer's Certificate of
Exemption renewed as a "religious institution". At that time,
the statute did not contain the current provisions which
specifically include Christian television stations which meet
certain criteria within the definition of "religious
institutions". XXXX (CTC), did have a Chapel as part of its
facility at which regular religious services were held. The
final order did not address the narrower issue of whether CTC
was a church, since that issue was not at bar. Instead, the
Department's ruling was limited in scope to recognizing that CTC

met the statutory definition of a religious institution for
purposes of having its Consumer's Certificate of Exemption
renewed. Further, the Final Order acknowledged that the
legislature intended the following based on its choice of
language in s. 212.08(7)(o), F.S., relating to the tax treatment
of purchases and sales by "churches" and "religious
institutions:

"It appears from these statutes that the Legislature
intended to draw a distinction for sales tax exemption
purposes between churches' andnonprofit religious
institutions.' While the former enjoy a two-way exemption
(on purchases and sales), the latter enjoys the exemption
from taxation only on purchases...."

CONCLUSIONS OF LAW

Inasmuch as the Taxpayer already holds a valid Consumer's
Certificate of Exemption as "religious institution" pursuant to
s. 212.08(7)(o)2.a., F.S., based on its ownership and operation
of a non-profit Florida television station engaged in religious
broadcasting activities, this fact taken together with the
Taxpayer's further activity of conducting regularly scheduled
worship/church services open to the public at its station
facility serves to satisfy the definition found in Rule 12A1.001(3)(c), F.A.C. Accordingly, sales of tangible personal
property by the Taxpayer qualify as exempt from sales and use
tax pursuant to s. 212.08(7)(o)1.a., F.S. Therefore, the
Taxpayer bears no obligation to charge and collect sales tax on
its sales of tangible personal property. However, please be
alerted to the fact that the Taxpayer is and remains liable to
collect and remit tax on any leases, licenses, or rental by it
to others of real property.

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S., which is binding on the Department only
under the facts and circumstances described in the request for
this advice as specified in s. 213.22, F.S. Our response is
predicated on those facts and the specific situation summarized
above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the

statutes or rules upon which this advice is based may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response and your request are
public records under Chapter 119, F.S., which are subject to
disclosure to the public under the conditions of s. 213.22, F.S.
Your name, address, and any other details which might lead to
identification of the taxpayer must be deleted by the Department
before disclosure. In an effort to protect confidential
information, we request you notify the undersigned in writing
within 15 days of any deletions you wish made to the request or
this response.

Sincerely,

Daniel M. Wagner, Jr.
Tax Law Specialist

Control No. 20983